How large IT companies help build housing in California
The renowned Apple Corporation invests in various market segments. And if earlier their influence extended more on IT and the media sphere, now the management intends to master a new direction – real estate. The company has decided to invest in housing in California.
Apple Corporation intends to invest $2.5 billion in the state real estate market to help deal with the housing crisis. The program will last two years, during which the funds will be used for:
- granting loans to the state as a whole and to companies registered in its territory. They are expected to build housing for population with middle and lower-middle income by the $1 billion provided;
- another $1 billion will go to the mortgage fund, which supports people who buy real estate. First of all, emergency services workers, teachers and veterans can count on such financial assistance.
- $300 million are being invested in affordable housing. For this purpose, in San Jose about 17 hectares of land are being allocated to build 3800 apartments;
- $150 million will provide financial support for various housing projects, which are being implemented in cooperation with the non-profit Housing Trust;
- $50 million will be directed to a charity organization that deals with the homeless and helps them.
Apple has a five-year plan to invest in new facilities. The goal is to improve the living environment for middle and lower-middle income people.
The San Francisco property market is in crisis. Within 3 months, about 30 thousand people left the city, which led to a sharp decline in house property in this part of the Gulf. This situation is the worst in the last 7 years. At the same time the rent of houses and apartments in the city is quite high, and not everyone can afford it.
The vulnerable category of the population is civil servants – teachers, ambulance workers, service providers and firefighters. Apple Corporation has conducted its research, according to which people are forced to leave the city due to the high cost of renting property. This situation is particularly acute in the company, as Silicon Valley and San Francisco are their homeland. Therefore, it is important to help the region and its residents to provide affordable apartments to those in need.
Apple is not the first company to contribute to solving pressing social issues. Google and Facebook are already taking part in such projects, which are investing in the construction of housing in California. Microsoft Corporation has donated about $500 million to develop the real estate market in Seattle.